Atlantic Fertilizer (AF) operates a fertilizer plant in New Brunswick. AF made a major sale to the government of Togo in Africa and engaged Pearl Shipping (PS) to transport the fertilizer to Togo for a fee of $60,000. The contract between AF and PS specified that AF would deliver the cargo to PS for loading on its ship between March 25 and 31 and that AF would pay $1000 (in addition to the shipping charges) for each day after March 31 that the cargo was delayed. AF had difficulty in filling the large order in its plant and notified PS that delivery would be sometime after March 31.
PS is contemplating AF’s message and deciding how it should react. Options under consideration are to wait for AF to deliver and add the $1000 daily charge to the bill; give AF a firm date by which it must deliver; or terminate the contract with AF and seek another cargo for its ship. Which options are legally available to PS? Which should PS choose?